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Vredeseilanden Facilitating Access to Finance for Sustainable Agricultural Chain Development  Workgroup Social Economy ATOL  December 2, 2009
Content ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Value Chain  - Bananes APROVAG GIE de producteurs Consommateurs APROVAG 3 grossistes - Dakar, Touba, Kaolack Demi-grossistes Détaillants Intermédiaires Coxeurs Transformatrices urbaines Transformatrices rurales
Financing Needs Chain Phase Activity Type of credit Input provision Purchase of inputs Equipment Short term (< 1yr) revolving fund Medium term Production Growing/ maintenance Short term (<1yr) revolving fund Gathering and storage Cash purchases Infrastructure Short term (1yr) revolving fund Medium and long term Processing Infrastructure Medium and long term  Equipment Processing costs Short term (1yr) revolving fund Marketing/ trading Working capital Short term (1yr) revolving fund Export Export costs Short term (1yr) revolving fund Retailing Working capital Short term (1yr) revolving fund Investments MT and LT loans
[object Object],[object Object],[object Object]
Two type of actors finance the chain: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Rural finance history ,[object Object],[object Object],[object Object]
Microfinance ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Commercial banks  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Value Chain Financing ,[object Object],[object Object],[object Object]
VCF – financial sector actors Chain Phase Type of credit Chain actor Credit Provider Input provision ST(< 1yr) revolving fund Farmers  MFIs , SACCOs Middlemen, Money lenders Production ST (<1yr) revolving fund Farmers MFIs, SACCOs,Middlemen Money lenders Gathering and storage ST (1yr) revolving fund Farmers' organisations SACCOs Local FI  Higher level FIs  e.o. through warrantage Processing MT and LT FO Local FI  (Few International FI) Local FI  (Few International FI) ST(1yr) RV Local FI Marketing/ trading ST(1yr) RV FO  Local FI, SACCOs Export ST(1yr) RV FO Local FI, International FI Retailing ST (1yr) RV FO Local FI MT and LT loans FO Local FI
VCF - Embedded finance - private Chain Phase Type of credit Chain actor Credit Provider Input provision Short term (< 1yr) RV Farmers + FO SME + larger companies SME + larger companies Traders’ credit Production ST(<1yr) RV  Farmers Contract farming Gathering and storage ST(<1yr) RV Group of interest; Farmers' organisations * Warehouse certificates /Warrantage Processing Medium and Long term  FO SME + larger companies Local FI Few Intern. FI Commercial banks Leasing ST(<1yr) RV Local FI
VC + private sector Chain Phase Type of credit Chain actor Credit Provider Marketing/ trading ST(1yr) RV FO +  SME + larger companies Trader credit – via commercial bank financing Export ST(1yr) RV FO SME + larger companies Trader credit – via   Commercial bank financing Retailing ST(1yr) RV  FO SME + larger companies Local FI Commercial banks MT and LT loans FO SME + larger companies Local FI Commercial banks
Case of APROVAG ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Conclusions (1) ,[object Object],[object Object],[object Object],[object Object]
Conclusions (2) ,[object Object],[object Object],[object Object]
Conclusions  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
VE ‘s Policy ,[object Object]
The Principles ,[object Object],[object Object],[object Object],[object Object]
The Objectives of VE ,[object Object],[object Object]
The Strategies (7) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Mode of Intervention  Grant Vs Loans ,[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object]

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Value Chain Finance Vreideselanden Gerda Heyde 091202

  • 1. Vredeseilanden Facilitating Access to Finance for Sustainable Agricultural Chain Development Workgroup Social Economy ATOL December 2, 2009
  • 2.
  • 3. Value Chain - Bananes APROVAG GIE de producteurs Consommateurs APROVAG 3 grossistes - Dakar, Touba, Kaolack Demi-grossistes Détaillants Intermédiaires Coxeurs Transformatrices urbaines Transformatrices rurales
  • 4. Financing Needs Chain Phase Activity Type of credit Input provision Purchase of inputs Equipment Short term (< 1yr) revolving fund Medium term Production Growing/ maintenance Short term (<1yr) revolving fund Gathering and storage Cash purchases Infrastructure Short term (1yr) revolving fund Medium and long term Processing Infrastructure Medium and long term Equipment Processing costs Short term (1yr) revolving fund Marketing/ trading Working capital Short term (1yr) revolving fund Export Export costs Short term (1yr) revolving fund Retailing Working capital Short term (1yr) revolving fund Investments MT and LT loans
  • 5.
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  • 11. VCF – financial sector actors Chain Phase Type of credit Chain actor Credit Provider Input provision ST(< 1yr) revolving fund Farmers MFIs , SACCOs Middlemen, Money lenders Production ST (<1yr) revolving fund Farmers MFIs, SACCOs,Middlemen Money lenders Gathering and storage ST (1yr) revolving fund Farmers' organisations SACCOs Local FI Higher level FIs e.o. through warrantage Processing MT and LT FO Local FI (Few International FI) Local FI (Few International FI) ST(1yr) RV Local FI Marketing/ trading ST(1yr) RV FO Local FI, SACCOs Export ST(1yr) RV FO Local FI, International FI Retailing ST (1yr) RV FO Local FI MT and LT loans FO Local FI
  • 12. VCF - Embedded finance - private Chain Phase Type of credit Chain actor Credit Provider Input provision Short term (< 1yr) RV Farmers + FO SME + larger companies SME + larger companies Traders’ credit Production ST(<1yr) RV Farmers Contract farming Gathering and storage ST(<1yr) RV Group of interest; Farmers' organisations * Warehouse certificates /Warrantage Processing Medium and Long term FO SME + larger companies Local FI Few Intern. FI Commercial banks Leasing ST(<1yr) RV Local FI
  • 13. VC + private sector Chain Phase Type of credit Chain actor Credit Provider Marketing/ trading ST(1yr) RV FO + SME + larger companies Trader credit – via commercial bank financing Export ST(1yr) RV FO SME + larger companies Trader credit – via Commercial bank financing Retailing ST(1yr) RV FO SME + larger companies Local FI Commercial banks MT and LT loans FO SME + larger companies Local FI Commercial banks
  • 14.
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  • 23.